This page has been archived and commenting is disabled.
Goldman Asks Whether The Euro Can Climb Higher
Goldman's Jon Pierce asks why, and how much longer, will the EUR keep surging. He provides some answers, but not the real one, which is that the Fed's second round of monetization is now being actively priced in and just like last year, is resulting in a plunge in the dollar. Which incidentally means the end of Europe's export-led economic "miracle" - it was fun while it lasted. Surely US exports can take over from Europe... Of course it would be great if the US had stuff to export. Either way, Goldman has provided another downside stop target of 1.305 (a level we were at as long ago as last Friday). Somehow every time GS goes out and shares its stop limits, they imminently get hit. Although with the Fed now actively back to destroying the dollar, Goldman may just luck out for once.
Euro update - Can we climb further ?
The Euro continues to trade in good heart . The clearance and close above the Fibbonaci resistance level at 1.3125 is very encouraging. The news/data backdrop continues to be favourable with yesterday's strong European PMIs and somewhat weaker US ISM the latest data installment to highlight the contrasting picture . The tightening of peripheral spreads and strong risk performance have helped drive the move though it is harder to see this as an ongoing source of support . The past week has seen some significant medium to longer term shorts covered and I don’t think short covering can be a meaningful upwards driver going forward . But whilst the market has probably covered its short position I don’t think it has yet built any sort of meaningful long position and given the very positive backdrop there is plenty of room for fresh buying to reflect this . It certainly concerns me that we have bounced 11% from the 1.1876 low on 7th June but perhaps we need to view the recent upmove in the context of the bigger move lower from the 1.5145 high of November last year . It can be argued that the reasons for the large move down have largely been negated and we therefore still have plenty of room to retrace higher . I am sticking with a core long position ; looking to add should we dip to 1.3125 and rolling up a stop to 1.3050 (below the week's low) . Next resistance is at the March low of 1.3267 and the next main target is the 200DMA at 1.3568 .
Good luck
»
- 2667 reads
- Printer-friendly version
- Send to friend
- advertisements -
Climb, bitchez
QE2 in the US is likely to just be a closet repo operation at 0.25% cost and little/ no haircut, this keeps the carry on the bank balance sheets and generates liquidity in an environment of M3 contraction...
Let's see gold down , Euro up, dollar down all from putting a little lipstick on PIIGS. I am curious to see what happens when someone wakes up next to it and has to chew their arm off in order not to have to marry it. The Euro is still dead over the long run IMO.
1.3267 resist; hit 1.3259 this morning; today or tomorrow high likelihood of euro stall
agree, with a corresponding equity market wobble toward risk off.
" Goldman Asks..." - no, it should be "Ask Goldman - and you shall receive"
The trend is your friend.
Does Clintons godson work for Goldman?
Congress & bureaucrats are doing everything in their power to keep exporting jobs, while failing to export illegal aliens...but ranting politics won't increase my P&L.
Somebody's been sippin' the stress-test kool-aide. Mmmm...Jim Jones brand!
eur vs usd it' a zombie match. The winner it's a none interest issue.
In each of the two sides there are people frightened about their own currency collapse.
I think it won't happen. The puppet masters are using hyperinflation fears to boost spending and hyperdeflation fears to force us to agree on a freedomless community of nations.
They are actually boiling the frog...
There are certainly a lot of details like that to take into consideration.I read and understand the entire article and I really enjoyed it to be honest.
cheap vps | windows vps | forex vps